54.866 History History: 1987 a. 191; 2005 a. 387 s. 533; Stats. 2005 s. 54.866.
54.868 54.868 Receipt for custodial property. A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian under ss. 54.854 to 54.898.
54.868 History History: 1987 a. 191; 2005 a. 387 s. 534; Stats. 2005 s. 54.868.
54.870 54.870 Manner of creating custodial property and effecting transfer; designation of initial custodian; control.
54.870(1)(1)Custodial property is created and a transfer is made whenever:
54.870(1)(a) (a) An uncertificated security or a certificated security in registered form is either:
54.870(1)(a)1. 1. Registered in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act"; or
54.870(1)(a)2. 2. Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in sub. (2);
54.870(1)(b) (b) Money is paid or delivered, or a security held in the name of a broker, financial institution or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act";
54.870(1)(c) (c) The ownership of a life or endowment insurance policy or annuity contract is either:
54.870(1)(c)1. 1. Registered with the issuer in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act"; or
54.870(1)(c)2. 2. Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act";
54.870(1)(d) (d) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer or other obligor that the right is transferred to the transferor, an adult other than the transferor or a trust company, whose name in the notification is followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act";
54.870(1)(e) (e) An interest in real property is recorded in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act";
54.870(1)(f) (f) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either:
54.870(1)(f)1. 1. Issued in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act"; or
54.870(1)(f)2. 2. Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words: “as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act"; or
54.870(1)(g) (g) An interest in any property not described in pars. (a) to (f) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in sub. (2).
54.870(2) (2)An instrument in the following form satisfies the requirements of sub. (1) (a) 2. and (g):
Transfer under the Wisconsin Uniform
Transfers to Minors Act
I, .... (name of transferor or name and representative capacity if a fiduciary) hereby transfer to .... (name of custodian), as custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act, the following: .... (insert a description of the custodial property sufficient to identify it).
Dated: ....
....
(Signature)
.... (name of custodian) acknowledges receipt of the property described above, as custodian for the minor named above under the Wisconsin Uniform Transfers to Minors Act.
Dated: ....
....
(Signature of Custodian)
54.870(3) (3)A transferor shall place the custodian in control of the custodial property as soon as practicable.
54.870 History History: 1987 a. 191; 2005 a. 387 s. 535; Stats. 2005 s. 54.870.
54.872 54.872 Single custodianship. A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under ss. 54.854 to 54.898 by the same custodian for the benefit of the same minor constitutes a single custodianship.
54.872 History History: 1987 a. 191; 2005 a. 387 s. 536; Stats. 2005 s. 54.872.
54.874 54.874 Validity and effect of transfer.
54.874(1)(1)The validity of a transfer made in a manner prescribed in ss. 54.854 to 54.898 is not affected by:
54.874(1)(a) (a) Failure of the transferor to comply with s. 54.870 (3) concerning possession and control;
54.874(1)(b) (b) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under s. 54.870 (1); or
54.874(1)(c) (c) Death or incapacity of a person nominated under s. 54.858 or designated under s. 54.870 as custodian or the disclaimer of the office by that person.
54.874(2) (2)A transfer made under s. 54.870 is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties and authority provided in ss. 54.854 to 54.898, and neither the minor nor the minor's legal representative has any right, power, duty or authority with respect to the custodial property except as provided in ss. 54.854 to 54.898.
54.874(3) (3)By making a transfer, the transferor incorporates in the disposition all of the provisions of ss. 54.854 to 54.898 and grants to the custodian, and to any 3rd person dealing with a person designated as custodian, the respective powers, rights and immunities provided in ss. 54.854 to 54.898.
54.874 History History: 1987 a. 191; 2005 a. 387 s. 537; Stats. 2005 s. 54.874.
54.876 54.876 Care of custodial property.
54.876(1)(1)A custodian shall:
54.876(1)(a) (a) Take control of custodial property;
54.876(1)(b) (b) Register or record title to custodial property if appropriate; and
54.876(1)(c) (c) Collect, hold, manage, invest and reinvest custodial property.
54.876(2) (2)In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor.
54.876(3) (3)A custodian may invest in or pay premiums on life insurance or endowment policies on:
54.876(3)(a) (a) The life of the minor only if the minor or the minor's estate is the sole beneficiary; or
54.876(3)(b) (b) The life of another person in whom the minor has an insurable interest only to the extent that the minor, the minor's estate or the custodian in the capacity of custodian, is the irrevocable beneficiary.
54.876(4) (4)A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: “as a custodian for .... (name of minor) under the Wisconsin Uniform Transfers to Minors Act".
54.876(5) (5)A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained the age of 14 years.
54.876 History History: 1987 a. 191; 2005 a. 387 s. 538; Stats. 2005 s. 54.876.
54.878 54.878 Powers of custodian.
54.878(1)(1)A custodian, acting in a custodial capacity, has all the rights, powers and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers and authority in that capacity only.
54.878(2) (2)This section does not relieve a custodian from liability for breach of s. 54.876.
54.878 History History: 1987 a. 191; 2005 a. 387 s. 539; Stats. 2005 s. 54.878.
54.880 54.880 Use of custodial property.
54.880(1)(1)A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:
54.880(1)(a) (a) The duty or ability of the custodian personally or of any other person to support the minor; or
54.880(1)(b) (b) Any other income or property of the minor which may be applicable or available for that purpose.
54.880(1m) (1m)At any time a custodian may transfer part or all of the custodial property to a qualified minor's trust without a court order. Such a transfer terminates the custodianship to the extent of the transfer.
54.880(2) (2)On petition of an interested person or the minor if the minor has attained the age of 14 years, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor.
54.880(3) (3)A delivery, payment or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.
54.880 History History: 1987 a. 191; 2005 a. 216; 2005 a. 387 s. 540; Stats. 2005 s. 54.880.
54.882 54.882 Custodian's expenses, compensation and bond.
54.882(1)(1)A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.
54.882(2) (2)Except for a person who is a transferor under s. 54.860, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year.
54.882(3) (3)Except as provided in s. 54.888 (6), a custodian need not give a bond.
54.882 History History: 1987 a. 191; 2005 a. 387 s. 541; Stats. 2005 s. 54.882.
54.884 54.884 Exemption of 3rd person from liability. A 3rd person, in good faith and without court order, may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining any of the following:
54.884(1) (1)The validity of the purported custodian's designation.
54.884(2) (2)The propriety of, or the authority under ss. 54.854 to 54.898 for, any act of the purported custodian.
54.884(3) (3)The validity or propriety under ss. 54.854 to 54.898 of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian.
54.884(4) (4)The propriety of the application of any property of the minor delivered to the purported custodian.
54.884 History History: 1987 a. 191; 2005 a. 387 s. 542; Stats. 2005 s. 54.884.
54.886 54.886 Liability to 3rd persons.
54.886(1)(1)A claim based on a contract entered into by a custodian acting in a custodial capacity, an obligation arising from the ownership or control of custodial property or a tort committed during the custodianship may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.
54.886(2) (2)A custodian is not personally liable:
54.886(2)(a) (a) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or
54.886(2)(b) (b) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.
54.886(3) (3)A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.
54.886 History History: 1987 a. 191; 2005 a. 387 s. 543; Stats. 2005 s. 54.886.
54.888 54.888 Renunciation, resignation, death or removal of custodian; designation of successor custodian.
54.888(1)(1)A person nominated under s. 54.858 or designated under s. 54.870 as custodian may decline to serve by delivering a valid disclaimer under s. 854.13 to the person who made the nomination or to the transferor or the transferor's legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing and eligible to serve was nominated under s. 54.858, the person who made the nomination may nominate a substitute custodian under s. 54.858; otherwise the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property under s. 54.870 (1). The custodian so designated has the rights of a successor custodian.
54.888(2) (2)A custodian at any time may designate a trust company or an adult other than a transferor under s. 54.860 as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated or is removed.
54.888(3) (3)A custodian may resign at any time by delivering written notice to the minor if the minor has attained the age of 14 years and to the successor custodian and by delivering the custodial property to the successor custodian.
54.888(4) (4)If a custodian is ineligible, dies or becomes incapacitated without having effectively designated a successor and the minor has attained the age of 14 years, the minor may designate as successor custodian, in the manner prescribed in sub. (2), an adult member of the minor's family, a conservator of the minor or a trust company. If the minor has not attained the age of 14 years or fails to act within 60 days after the ineligibility, death or incapacity, the conservator of the minor becomes successor custodian. If the minor has no conservator or the conservator declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family or any other interested person may petition the court to designate a successor custodian.
54.888(5) (5)A custodian who declines to serve under sub. (1) or resigns under sub. (3), or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian, by action, may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.
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2017-18 Wisconsin Statutes updated through 2019 Wis. Act 5 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on April 21, 2019. Published and certified under s. 35.18. Changes effective after May 11, 2019, are designated by NOTES. (Published 5-11-19)